NOTIFICATION

(CUSTOMS)

S.R.O. 447(I)/2004.- In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990 and in supersession of its Notification Nos. S.R.O. 506(I)/88 dated the 26^th June, 1988 and S.R.O. 403(I)/96 dated the 13^th June, 1996, the Federal Government is pleased to exempt vehicles, including motor car, falling under respective headings of Chapter 87 of the First Schedule to the Customs Act, 1969 (IV of 1969), imported into Pakistan free of customs- duty and sales tax by diplomatic representatives or mission of a foreign government in Pakistan or privileged person, organization, office, agency and subsequently sold or otherwise disposed off in the country to a person entitled to import the same without payment of customs duty and sales tax under this notification, from so much of customs-duty as is in excess of that leviable as set out below, subject to the following conditions, namely:-

(a) no such motor vehicle shall be sold, transferred or otherwise disposed off in Pakistan except with the prior permission of the Central Board of Revenue given on an application made to it through Ministry of Foreign Affairs or Economic Affairs Division, as the case may be;

(b) no such motor vehicle shall be sold or otherwise disposed off in Pakistan within five years of its importation, to any one other than the Central Board of Revenue or a diplomatic representative or mission of a foreign government in Pakistan or privileged person, organization, office or agency, except when the diplomatic representative by whom it was imported is transferred from Pakistan within two years of its importation and it has been used by him for not less than one year of his arrival in Pakistan;

(c) no such motor vehicle shall be sold or otherwise disposed off in Pakistan before the expiration of five years from the date of its importation without payment of customs-duty and other taxes at the following rates, namely:-

(i)

If sold or otherwise disposed off before the expiration of five years, from the date of importation;

whole of the customs- duty and other taxes leviable at the prevailing rates on value determined at the time of importation.

(ii)

if sold or otherwise disposed off after the expiration of five years, from the date of importation; and

75% of the customs- duty and other taxes leviable at the prevailing rates on value determined at the time of importation.

(iii)

if sold or otherwise disposed off before the expiration of ten years, from the date of importation.

25% of the customs- duty and other taxes leviable at the prevailing rates on value determined at the time of importation.

[C.No. 3(9)-Tar-II/84.Pt.]

( MUHAMMAD RAMZAN )

Additional Secretary